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Income Tax

Foreign trip Expenses on spouse of Director not allowable unless connected with business

Case Law Details

TaxGuru Citation
2013 taxguru.in 861
Case Name
Harinagar Sugar Mills Limited Vs. ACIT (ITAT Mumbai)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2005- 06
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ITAT MUMBAI BENCH ‘H’

Harinagar Sugar Mills Ltd.

versus

Assistant Commissioner of Income-tax, Ward-4(2), Mumbai

IT Appeal No. 9037 (Mum.) of 2010
[ASSESSMENT YEAR 2005-06]

NOVEMBER 21, 2012

ORDER

Rajendra, Accountant Member

The present appeal is directed against the order date 18-10-2010 of the CIT(A)-11, Mumbai. Following Grounds of Appeal have been raised by the appellant.

(1a) The Ld. CIT(Appeals) erred in confirming dis allowance of Rs. 13,38,645/- being foreign tour expenses of accompanying spouse of the Directors of the company purported to be personal expenses.

(b) Your appellant prays that, in view of Honorable ITAT Mumbai Bench Orders in Appellant’s own case in assessment years 1991-92 to 1996-97 and other years, the Assessing Officer may be directed to delete the said addition.

2. The assessee- company, engaged in the manufacturing of sugar and biscuits, filed its return of income on 26.08.2006 declaring income of Rs. 3.84 Crores under the normal computation of income. Assessment was finalized on 01.12.2007 u/s. 143(3) of the Income-tax Act, 1961 (Act) by the Assessing Officer (AO) determining total income at Rs. 4.07 Crores under the normal computation. During the assessment proceedings, AO found that wives of the Directors had undertaken visit to foreign countries. The details of journeys undertaken were tabulated by the AO as under:

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